31
29 Chapter- V INTERNATIONAL TRADE REQUIREMENTS International trade in fruits and vegetables has expanded more rapidly than trade in other agricultural commodities especially since the 1980s. Global fruit and vegetable trade has increased from $ 3.4 billion in 1961 to $ 90.48 billion in 2006. There is enormous diversity in fruits and vegetable trade, because of increase in variety of offerings. Advanced technology and trade agreements have played a major role in allowing access to markets and in promoting trade. In this backdrop, the understanding of the requirements of the international trade is very much required to accelerate the process. The requirements of International trade are classified into two group’s i.e. legislative and non-legislative requirements which are illustrated below: (a) Legislative requirements (i) Tariffs (ii) Non- tariffs – quality standards, MRL’s, marking, labeling, better packaging, contamination etc. (b) Non- legislative requirements (i) Good Agricultural Practices Legislation for tariff barriers has been mainly enacted by the countries with a view to protect the farmers, whereas legislation for non- tariff barriers like quality standards etc. have been framed in the interest of consumers. Substantial reduction in tariff barriers is essential to further enhance the global exchange of fruits and vegetables. In this regard, regional trade agreements, negotiated bilateral free trade agreements and further liberalization as a result of WTO negotiations, will eventually result in lowering the barriers to trade and better access. Requirements of tariffs and non-tariffs for different countries i.e. European Union, CIS countries like Russia and Ukraine, ASEAN countries, GCC countries, Australia, Japan,

Chapter- V INTERNATIONAL TRADE REQUIREMENTS

  • Upload
    others

  • View
    2

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

29

Chapter- V

INTERNATIONAL TRADE REQUIREMENTS

International trade in fruits and vegetables has expanded more rapidly than trade in other

agricultural commodities especially since the 1980s. Global fruit and vegetable trade has

increased from $ 3.4 billion in 1961 to $ 90.48 billion in 2006. There is enormous diversity

in fruits and vegetable trade, because of increase in variety of offerings. Advanced

technology and trade agreements have played a major role in allowing access to markets

and in promoting trade. In this backdrop, the understanding of the requirements of the

international trade is very much required to accelerate the process. The requirements of

International trade are classified into two group’s i.e. legislative and non-legislative

requirements which are illustrated below:

(a) Legislative requirements

(i) Tariffs

(ii) Non- tariffs – quality standards, MRL’s, marking, labeling, better

packaging, contamination etc.

(b) Non- legislative requirements

(i) Good Agricultural Practices

Legislation for tariff barriers has been mainly enacted by the countries with a view to

protect the farmers, whereas legislation for non- tariff barriers like quality standards etc.

have been framed in the interest of consumers. Substantial reduction in tariff barriers is

essential to further enhance the global exchange of fruits and vegetables. In this regard,

regional trade agreements, negotiated bilateral free trade agreements and further

liberalization as a result of WTO negotiations, will eventually result in lowering the barriers

to trade and better access.

Requirements of tariffs and non-tariffs for different countries i.e. European Union, CIS

countries like Russia and Ukraine, ASEAN countries, GCC countries, Australia, Japan,

Page 2: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

30

Korea, China and U.SA, are presented below. These requirements are based on Volume –

IV (B & C), of International Market Research covering Trade Scenario and Specifications.

5.1. REQUIREMENTS OF EUROPEAN COUNTRIES

The EU is the leading destination and source of supply in global trade of fruits and

vegetables. In the EU, all member countries have not only a common tariff for third

countries, but also a common market organization with policy mechanism and trade

agreements to stabilize the market for fruit and vegetables sector. Details of both

legislative and non-legislative requirements are given below:

5.1.1. Legislative Requirements

(a) Tariffs

• Generalized System of Preferences (GSP) Scheme

Under this initiative, tariff exceptions have been made for developing and least

developing countries. These countries have duty free access to EU round the

year for fruits and vegetables except for banana.

• Special regulatory requirements for banana

Imports of bananas into the EU are regulated by tariffs and quota since 2006.

Early tariff quota structure has been replaced by a single tariff (Euro 176 per ton)

without quota restriction. For bananas from ACP (African, Caribbean and Pacific

countries) countries, a zero duty is applicable up to the first 7, 75,000 tons net

weight annually. The quantum is distributed among ACP countries on a first

come, first serve basis.

• Spices

Import duties on most raw spices like pepper, cinnamon, cardamom, coriander

seeds, cumin seeds, ginger, turmeric, curry, etc. are nil. However major spices

that attract duties are vanilla (2.1%), cloves (2.8%) and mixture of spices (2.3%).

Page 3: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

31

• Other commercial crops/products

Imports of sesamum seeds, soyameal and cotton from GSP countries is

duty free.

(b) Non Tariffs

Many other aspects, comprising quality standards, labeling and marking, MRL’s,

hygiene of food stuff, contamination, packaging standards, etc. should also be

considered while exporting to EU markets. The quality standards of India which are

being adopted by exporters meet the EU requirements.

5.1.2. Non legislative requirements

Non legislative requirements include environmental, ethical and social policies.

(a) Bench Marking Food

There are a number of non legislative standards that have to be adopted on a

voluntary basis. Many buyers may ask suppliers to comply on environmental,

health, safety, traceability, good agricultural practices and social responsibility

issues. Details of which are given in the following paragraphs:

• Food quality

Complete traceability from the field to final consumers is required. A set of

standards have been established through the production chain and in audit

system for verification.

• Social impact

Social impact comprises occupational health, child labour, forced labour,

minimum wages, etc. This aspect aims to ensure that reasonable conditions for

workers are provided based on ILO conventions and ISO management system.

Page 4: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

32

• Environment friendly production

It requires that food is produced with a minimum damage to the environment

using sustainable farming system.

• Good Agricultural Practices

EUREPGAP which is now known as GLOBALGAP is already quite popular

among Indian farmers and most of them are covered under registration.

5.1.3. Trade and Consumer Preferences

(i) General preferences

General preferences of consumers are given below:

• New and Exotic products

Exotic items are becoming common and popular like mango, papaya,

pomegranates, Physalis, etc. that have decorative attributes also, Similarly there

is lot of demand for small products comprising mini cucumbers, mini sweet

peppers, cherry tomatoes, etc.

• Uninterrupted Supply

Because of new health trends, consumers prefer the supply of the fruits and

vegetables, which are made available by mostly countries in Southern

hemisphere, African countries, India and Pakistan throughout the year.

• Changing Life style

There is increased demand for processed items such as pre-cut-washed and

scraped-peeled-prepared items.

• Food Safety

Because of food safety concerns, there is demand for organic fruits and

vegetables mainly in Germany, Sweden, Denmark, France and UK. Social

awareness has also led to increased demand for “Fair trade” certified products.

Page 5: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

33

(ii) Specific product preferences

EU Market requirements

(a) Mango

The details of market requirements of mango are described in brief:

• International quality standards

Already well adopted in India as Codex Alimentarius standards

• Minimum Labeling

It is well documented and exporters are aware of the requirements like:

o Name and address of exporters/ packers

o Name of product/ variety

o Origin of produce

o Class or grade

o Size

o Weight

• Packaging

Mangoes are packed in a single layer in fruit cartons (telescope or single piece

folding) Fruits are wrapped in paper or padded.

• Import regulatory documents

o Phytosanitary certificate from the country of origin

o Certificate of origin on GSP Form A for developing and least developed

countries

• Specific Market trends and preferences

o Market for mangoes is growing because of improvement in quality, longer

shelf life and shift from air to sea freight with bulk deliveries at competitive

prices.

Page 6: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

34

o Coloured mangoes are preferred over green varieties

o Many consumers prefer pre-peeled and pre-cut (ready to eat).

o Multiple retailers have already started responding to the demand.

(b) Pineapples

♦ Market requirements

International quality standard (Codex Alimentarious standards for pineapples) is

followed in India. The labeling and import regulatory documents are the same

as given for mango.

♦ Specific Market trends and preferences

• Germany, Italy and UK are the largest markets. Costa Rica is the

leading supplier followed by Ivory Coast, Ghana, Ecuador, Brazil, etc.

• EU market is growing and there is demand for new varieties like Baby,

MD2.

• As it is cumbersome to cut pineapple. Some African countries supply

value added pre-cut packed or ready to eat pineapples to Europe.

• UK and France prefer 0.9 kg to 1.5 kg fruits.

• UK prefers 2/3 colour stage at destination.

• Crown must be free of dried and dead leaves and its leaves must be

fresh, turgid and green.

• Preferences are for uniformity in colour and size in a pack.

Page 7: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

35

(c) Spices

Import Regulations and Requirements

♦ Quality standards - Sanitary and Phytosanitary

The standards of most importing countries carry specification on micro cleanliness.

The ESA and ASTA guidelines are in use all over the world. The details of which

have been given in Report on International Market Research Volume - IV C (i) and

are summarized below (Table 1).

Table 1: ESA quality specifications

Turmeric S.No. Specification Ginger

Whole Ground

1 Extraneous matter % 1 1 1

2 Foreign matter % 2 2 2

3 Ash % w/w max (ISO) 8 (ISO) 8 (BSI) 9(ISO)

4 Acid insoluble ash % w/w max 2(ESA) 2(BSI) 2.5 (ESA)

5 Maximum water % w/w max 12 (ISO) 12(BSI) 10 (ISO)

6 Volatile oil 1.5 (ISO) 2.5(BSI) 1.5 (ESA)

7 Microbe

a. Salmonella abs in 25 g, yeast

& molds

b. E. coli

105/g target, max 106/g absolute

102/g target, max 103/g absolute

Source:http//www.espspices.org/content/pdts/ESAQualityMinimalDocument191104.pdp

BSI: Bureau Standards Institute

ESA: European Spices Association

ISO: International Organization for Standardization

Page 8: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

36

American Spices Trade Association has fixed its own specifications which are given

in Table 2

Table 2: ASTA Cleanliness Specifications for spices

Specification

(1)

Units

(2)

Ginger

(3)

Turmeric

(4)

Whole insects dead by count

no/pound

4 3

Excreta mammalian by mg/pound 3 5

Excreta other by mg/ pound 3.0 whole

10.0 split

5.0

Mold % by wt 3 1.0

Insect inflated/infested % by wt 3 1.0

Extraneous/foreign

matter

% by wt 1.0 for whole

0.5 for splits

0.5

Source: 1) Booklet, Dried ginger for exports, Spices Board, Cochin

2) Booklet, Turmeric for export, Spices Board, Cochin.

♦ Microbial load

Microbial contamination mainly arises from improper post-harvest handling and

storage. Proper drying and storage can reduce the microbial contamination. Markets

prefer a “clean” product rather than “cleaned”. Use of ethylene oxide is a popular

method for eliminating microbial contamination, but its use has been banned in

Europe and Japan. Sterilization by steam causes loss of volatile oil and flavour and it

is costly. However irradiation process is cost effective and practical.

Page 9: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

37

♦ Aflatoxins

Aflatoxins are extremely toxic metabolites (including B1, B2, G1, G2, M1, and M2)

produced by fungi Aspergillus flavus and Aspergillus parasiticus. Maximum load for

total aflatoxin has been set in almost all developed countries between 1 ppb and 20

ppb. The use of scientific methods of handling and use of modern dryers can reduce

the problem considerably.

According to the EU direction 3347/99 Sept 2001, nutmeg, pepper, turmeric and

ginger can have maximum 10 ppb total aflatoxins.

♦ Trace metal contamination

Hazardous metals are mercury, cadmium, arsenic, chromium and lead. The ESA

specifications on trace metal contaminants in spices (limit in mg/kg) are lead 10,

Arsenic 5, Copper 20 and Zinc 50.

♦ Pesticide residues

Tolerance limits in pesticide residues in EU are presented in Table 3.

Table 3: Tolerance limits of pesticide residues in ppm

Product DDT Endrin Heptachlor Captol Chlorophysiphos

Spices 0.05 0.01 0.01 1.02 0.05

♦ Other EU directives

EU direction 1999/2/EC allows spices and herbs to be treated with ionizing radiation;

however, consumer acceptance is very low. At the same time use of Ethylene oxide is

banned in EU but it is accepted in USA. Therefore, the best way is to adopt scientific

methods and modern dryers for eliminating microbial load, aflatoxins, etc.

Page 10: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

38

♦ Hazard Analysis

EU food hygiene directive (1993/43/EEC) requires food producing companies to do

HACCP analysis to ensure appropriate food safety.

♦ Traceability

Complete traceability from field to the final consumers is required in EU. A set of

standards have been prescribed along with in audit system for verification.

♦ Packing

Processed products should be packed in sealed, clean and sound paper cartons of

0.5 kg to 2.0 kg properly lined with a waterproof paper or in moisture proof bags made

of materials which do not impart any smell to the products. A suitable number of such

packs should be packed in cardboard or wooden boxes. The size of cardboard boxes

and number packs packed in a cardboard box is left to purchaser and seller.

♦ Marking

The following particulars should be marked or labeled on each bag or container of the

products:

a) Name of the material and the trade or brand name, if any

b) Name and address of manufacturers/packers

c) Batch or code number

d) Net mass

e) Grade of the material (if graded) according to national standards

f) Producing country

g) Any other marking required by purchaser

h) Year of production if known

Page 11: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

39

♦ Storage and Transport

The packs of spices should be stored in covered premises well protected from sun,

rain and excessive heat. The store room should be dry, free from objectionable

odours and proofed against entry of insects and vermin.

The ventilation should be controlled so as to give ventilation under dry conditions and

to be fully closed under damp conditions. In a storage godown, suitable facilities

should be available for fumigation. The packs should be so handled and transported

that they are protected from rain, from the sun, or other sources of excessive heat,

from objectionable odours and from cross infestation especially in the holds of ships.

5.2. CIS COUNTRIES - RUSSIA, UKRAINE AND KAZAKHSTAN

♦ Tariff structure

In Russia, there is a high tariff for tomato depending upon season of export. For

mango, banana, pineapple and grapes there is a tariff ranging from 3.75% to 4.85%.

Tariff for soyameal is 3.75% for GSP countries and sesame can be exported free of

duty to Russia.

For Ukraine tariff duties for mango and banana is 3% which is quite low but for grapes it

is 10%. For soyameal and cotton, the duties are also low 5% and 0% respectively, but

tariff duties for sesame are high i.e 20%. Tariff duties for tomato and onion for exporting

to Ukraine are also very high.

For Kazakhstan, fruits like mango, grapes, banana and pineapples can be exported

with a tariff of 3.75%. However, for exporting tomato, onion and green chillies a tariff

duty of 11.25%, 15% and 15% respectively will have to be paid. For exporting

soyameal and sesame a tariff duty of 3.75% will be charged. But cotton can be

exported duty free.

Page 12: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

40

The tariff structure for these countries is given in Table 4.

Table 4: Tariff Rates in Russia, Ukraine and Kazakhstan

Tariff rates in % Commodity Russia (GSP

Tariff)

Ukraine

(General Tariff)

Kazakhstan

(GSP Tariff)

Mango 3.75 3.00 3.75

Grapes 3.75 10.00 3.75

Pomegranate - - -

Lychees - - -

Banana 4.85 3.00 3.75

Pineapples 3.75 4.00 3.75

Tomato 16.57 – *25.98 100.96 11.25

Onion 11.25 20.00 15.00

Green chillies 11.25 - 15.00

Ginger - - -

Turmeric powder - - -

Soyameal 3.75 5.00 3.75

Sesame 0.00 20.00 3.75

Cotton - 0.00 0.00

Source: ITC Trade map

* Duty varies depending upon season of exports

5.3. REQUIREMENTS OF ASEAN COUNTRIES

♦ Tariffs and Protocols

Understanding tariffs and protocols of ASEAN countries is absolutely essential as all

these countries are in the neighbourhood of our country and we have specific

interest/inclination to export the farm produce and other commodities to these

Page 13: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

41

countries. In this document, only six countries namely Thailand, Indonesia,

Philippines, Malaysia, Vietnam and Singapore have been covered. The present state

of tariffs and protocols which are necessary to follow are described in following

paragraphs:

I. Tariffs

Export of mango, grapes and pomegranates to Thailand is free of duty as a

result of India-Thailand Free Trade Agreement w.e.f. 1/03/2006. However, high

import duty is imposed on lychees, bananas, pineapples, tomato, onion, green

chilly, ginger, turmeric powder and sesame. Export of cotton is also duty free

whereas a duty of 6% is levied on export of soyameal.

Indonesia has imposed 25% tariffs on import of mango and onion, whereas

import of soyameal and cotton is without any tariff. Imports of all other items

attract a tariff of 5%.

Export of onion, green chillies, and ginger to Philippines attracts tariff of 40%,

20% and 20% respectively. Similarly items like mango, banana, lychees,

pineapples and tomato are imposed tariffs in the range of from 10 to 15%.

However, other commodities like grapes (7%), turmeric powder (3%), soyameal

(3%), sesame (7%) and cotton (1%) are imposed with lower tariffs.

Malaysia imposes lowest tariffs as there is no tariff on tomato, onion, green

chillies, ginger, turmeric powder, sesame and soyameal. There is 60.82 $/ton

tariff on mango, tariff of 364.96 $/ton on bananas, 228.17 $/ton on pineapples

and 5% tariff on grapes & lychees. Export of cotton to Malaysia attracts a tariff of

10%.

Tariffs imposed by these four ASEAN countries on imports are detailed in Table 5.

Page 14: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

42

Table 5: Current tariff rates in ASEAN countries

Tariff rates in % Commodity Thailand Indonesia

Philippines Malaysia

Mango free 25 15 60.82$/ton

Grapes free 5 7 5

Pomegranate free - - -

Lychees 40% or 852.74 $/ton 5 10 5

Banana 40% or 852.74$/ton 5 15 364.96$/ton

Pineapples 40% or 852.74$/ton 5 10 228.17 $/ton

Tomato 40% or 108.18$/ton 5 10 0

Onion 60% or 159.09 $/ton 25 40 0

Green chillies 40% 0r 108.18 $/ton 5 20 0

Ginger 27% or 95.46 $ /ton 5 20 0

Turmeric powder 27% or 95.46 $ /ton 5 3 0

Soyameal 6 0 3 0

Sesame 30 5 7 0

Cotton 0 0 1 10

Source: ITC Trademap (www.trademap.org)

*According to India-Thailand Free Trade Agreement, exports of mango, grapes and

pomegranates to Thailand are free

(a) Vietnam

Tariff structure

General tariff for imported food articles as per www.trademap.org are, as follows:

Page 15: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

43

Product Ad Valorem

1) Fresh onions, tomatoes and green chillies 30%

2) Fresh bananas, guavas, mangoes, grapes etc. 40%

3) Sesamum seeds 10%

4) Cotton Nil

(b) Singapore

Tariff structure

Tariffs on imported fruits and vegetables as per www.trademap.org, are applied on the

basis of MFN duties (Most Favoured Nation), details of which are given below:

Product MFN duties

1) Fresh onions, tomatoes and green chillies Nil

2) Fresh mangoes, grapes, pineapples, bananas, Nil

and Litchi.

3) Sesamum seeds, soyameal and cotton Nil

With the signing of India-Singapore Comprehensive Economic Cooperation Agreement

(CECA) there is free trade between India and Singapore.

II. Other Non-tariff Requirements

(a) Thailand

(i) Sanitary and Phytosanitary aspects

Sanitary and phytosanitary certificate is required from the exporting country.

However, there is no post-entry quarantine. Also no radiation certificate is

required. Products, however, must be free of pests of quarantine concern.

Page 16: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

44

(ii) Other requirements

• Notice of intention to import must be given.

• Hand written phytosanitary certificates are not acceptable.

• All consignments must be labeled in Thai language giving

o Generic and Trade

o Registration number

o Name and address of manufacturer

o Date of manufacturing

o Net weight of contents

o Any additives used

• Registration Food and Drug Administration

o Registration with FDA is mandatory

o While seeking registration apply with two samples of the product,

details of exact composition by percentage of each ingredient and six

labels.

o For commodities of interest, an application can be made simply by

submission of a completed Orr 6 form (which can be downloaded from

http:www.fda.moph.go.th/eng/food/details/form Orr 6.stm.)

o FDA can be contacted at:

Food Control Division

Tel: 66-2590-7186, 66-2590-7189

Fax: 66-2591-8460

E mail: food @ fda.moph.go.th

(b) Indonesia

(i) Quarantine requirements

• Phytosanitary certificate is absolutely necessary from the country of

origin by appropriate authority for all products.

• The consignments are subject to plant quarantine inspection upon

arrival in Indonesia.

Page 17: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

45

• No radiation certificate is required.

• No import permit is necessary for exports of fruits and vegetables, but it

is required for export of sesame seeds.

• Pesticides regulations exist for fresh fruits and vegetables i.e. Maximum

residue levels.

• Products must originate from areas free of all types of fruit fly especially

in fresh fruits. Vegetables must be free of pests of quarantine concern.

• Fresh fruits may be required treatment of cold disinfestations up to 18

days at 2.8°C and fumigation with methyl bromide prior to importation.

• The above treatment is applicable to specific products for which local

plant health authority should be contacted.

(ii) Labeling

• The use of Bhasa Indonesia is mandatory on all types of goods.

Approval to omit Bhasa Indonesia labeling must be obtained from the

Indonesian Authority General.

• Labels for food products must-

o Indicate registration and issue of product no. (ML number) by

the Food & Drug Control Agency.

o Have an expiry date

o Be in Indonesian language.

o Have the complete name and address of importer

o Have a halal certificate from an agency approved by Indonesian

Islamic Council

(iii) Registration

• All food and beverages imported must be registered at the Indonesian

Food and Drug Control Agency. For imported products, the registration

process is completed by the Indonesian importers on behalf of foreign

exporting companies before goods are shipped to Indonesia.

Page 18: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

46

• Special forms are available that contain procedures required to be

followed.

• It is obligatory to send samples for analysis to determine the

ingredients, additives and microbiological content.

• Can contact Food and Drug Control Agency

Badan POM (NADFC)

J1 Percetakan,Negara No 23

Jakarta-10560, Indonesia

Fax: 021-42884117

E mail: informase @ pom.qo.id

(c) Philippines

Non tariff protocols / requirements

(i) Import permit

Import permit is required for exports of all fresh fruits, vegetables, sesame but

not for soyameal or raw cotton otherwise it is required for all plants and plants

products. This can be obtained from:

The Director

Bureau of Plant Industry

Department of Agriculture

692, San Andres St.

Malate, Manilla, Philippines

(ii) Radiation certificate

It is not required.

(iii) Phytosanitary certificate

All goods transported to Philippines must have phytosanitary certificate from place

of origin.

Page 19: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

47

Concerns

• Products must originate from areas free of all types of fruit fly.

• Products may be subject to cold disinfestations and should be

declared on phytosanitary certificate.

• Fruits must also be free of san jose scale, oriental fruit fly and codling

moth.

• All fresh vegetables must be free of pests of quarantine concern.

(iv) Food regulations

All food regulations are based on Codex Alimentarius Commission.

(v) Registration

Food and Beverage products are required to be registered with the Bureau of

Food and Drug (http:// www.doh.gov.ph/bfad.2/main.htm) prior to being sold in

Philippines market. Food registration is the responsibility of Philippians importer /

agent/ distributor.

(vi) Labeling

All goods must have a label in English or Filipino showing:

• Common or generic name

• Physical or chemical composition

• Preparation and storage direction

• Name and address of manufacturer/packer

• Country of origin

• Net contents

(d) Malaysia

Non - tariff protocols /requirements

All aspects of food standards in Malaysia are regulated under Food Act 1983 and Food

Regulation 1985.

Page 20: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

48

(i) Import permits

No import permits are required for export of fruits, vegetables, sesame and raw

cotton to Malaysia and if required it should be obtained from Director General of

Agriculture, Kuala Lampur.

(ii) Phytosanitary Certificate

Phytosanitary certificate is required for export of mango and raw cotton; and it will

be preferable to obtain Phytosanitary Certificate from the authorities in the country

of origin.

In case of mango, Phytosanitary certificate should declare it is free of mango seed

weevil. All fresh fruits and vegetables will be inspected on arrival.

Stored pests of concern (in case of sesame) are:

i. Khapra beetle : Trogoderma granarum

ii. Grain borer : Prostephasus truncatus

All consignments of raw cotton must be free of weed seeds as below:

i. Parthenium hysterophorus

ii. Sorghum halpense

iii. Rottboellia cochinensis

(iii) Malaysian SPS and Food standards system

Malaysia applies strict sanitary and phytosanitary measures for trade in plants,

food products. The legislative and regulatory measures are covered under Rules of

Plant Quarantine 1981 and Food Regulation 1983.

Malaysian food standards and regulation require that food be processed, stored

and handled in a sanitary manner which is applied to both domestic and imported

products.

Page 21: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

49

(iv) Labeling

Prepacked goods must include on the label

o Type

o Minimum quantity (weight) in metric scale

o Name and address of manufacturer / importer, of country of origin

o Language must be in Bhasa Malaysia or English

o Labels must not include wording which are likely to be misleading

(e) Vietnam and Singapore

Non- tariff requirements are not available.

5.4. GULF COUNTRIES

(i) Tariff structure

Examination of tariff structure of Saudi Arabia, UAE, Kuwait and Qatar shows that in

Saudi Arabia there is no general tariff on the import of fruits and vegetables,

whereas, in UAE, Kuwait and Qatar, there is a provision of imposition of MFN duties

on the entry of some commodities, but for fruits and vegetables, no duties are

charged. However on entry of ginger, turmeric, sesame seeds and cotton there is a

tariff of 5%. For soyameal export, however, there is no duty.

(ii) Non-tariff requirements

Details of non-tariff requirements are not available with regard to Gulf countries.

5.5. PACIFIC RIM COUNTRIES, CHINA AND U.S.A

Tariff and non- tariff requirements of Australia, Japan, China and South Korea are

discussed in the following pages:

(i) Tariff structure

The tariff structure on entry of fruits and vegetables, spices and other products is

given in table 6.

Page 22: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

50

Table 6: Current Tariff rates applicable in Pacific Rim countries and China

Countries Australia South

Korea

Japan China

Tariff rate

in %

Ad

Valorem

%

Equivalent Tariff as

applied MFN and

GSP duties (%)

Equivalent Tariff

as applied MFN

and APTA

duties (%)

Product

MFN GSP MFN APTA

Mango 0 30 3.0 0 15 10

Banana 0 30 20# -25## - 10 6.9

Pineapple - 30 17 - 12 7.9

Lychees - - - - - -

Grapes 5 45 7.8**-17*** - 13 -

Pomegranates - - - - 13 -

Tomato - 45 3.0 13 -

Onion 0 27 8.5 - 13 6.5

Green Chillies 0 - - - - -

Ginger (Dried) 0 - - - - -

Turmeric Powder 5 - - 0 - -

Soyameal 0 3 4.2 - 9 -

Sesame Seeds���� 0 40 0 - 10 9

Raw Cotton �������� - 0 0 - 40 -

Source: www.trademap.org

** If imported during the period from 1st Nov to last of Feb.

*** If imported during the period from 1st of March to 31st of Oct

# If imported during the period from 1st April to 30th Sep

## If imported during the period from 1st Oct to 31st March

���� Tariff duty of 40% is applied to exports of sesame seeds to South Korea within quota.

�������� For export of cotton to China within quota, tariff duty of 1% is applied. But for

exports beyond quota tariff duty of 40% is imposed.

Page 23: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

51

(ii) Non-tariff requirements

(a) Australia

(i) Import permit

An import permit is required before sending any food product to Australia.

Application for import permits can be carried out online at

http//www.daff.gov.au/aqis/import/application/forms.

However, some products are strictly prohibited and others are prohibited

unless a specific Import Risk Assessment (IRA) is carried out.

♦ Mangoes

IRA for mangoes from India was started in April 2008. Provisional IRA has been

released as there is already an IRA for mangoes from Mexico with established

protocols and also Australian Quarantine Inspection Service recognizes Indian

Directorate of Plant Protection and Quarantine & Storage as a competent

authority to undertake pre-export inspection.

However, until the provisional IRA is finalized, imports will not be allowed. Fruit

flies, mealy bugs, red banded mango caterpillar and mango weevil are the pests

of great concern to Australia.

The recommended quarantine measures are pre-export irradiation treatment,

supported by an operational system to maintain and verify quarantine status.

Australian quarantine inspectors are also required to pre clear and verify the

irradiation treatment of mangoes prior to export.

♦ Turmeric (fresh)

Turmeric fresh is prohibited into Australia unless a permit to export has been

issued.

Page 24: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

52

♦ Turmeric (dried)

• An import permit is not required, but a quarantine entry must be lodged for

each consignment.

• Material must be labeled with full botanical names, i.e. genus and species.

• All the material must be thoroughly dried and not capable of propagation

and must be free of prohibited seeds, live plant parts, live insects, soil and

other quarantine risk material prior to arrival in Australia.

♦ Ginger (fresh)

Ginger fresh is prohibited for entry into Australia.

♦ Sesame seeds – hulled

• An import permit is required and must be applied prior to importation.

• Quarantine entry must be lodged for each consignment.

• Seed must be free of live insects, soil, disease symptoms, prohibited seeds

and other plant material (leaf, stem, and pod material), animal material (e.g.

animal faeces, feathers, etc.) and any other extraneous contamination of

quarantine concern.

• Each consignment must be packed in a new and clean packaging.

• All commercial consignments require mandatory fumigation either pre or on

arrival in Australia with methyl bromide @ 80g/m3 for 48 hrs at 21oC.

• Pre-shipment fumigation is acceptable if the goods are accompanied by an

official Phytosanitary certificate along with fumigation details.

• On arrival, consignment must be inspected by a Quarantine officer to

ensure that the goods are packed in gas permeable bags.

• If the sesame is packed in gas proof packaging, the Phytosanitary

Certificate must state that sesame seed was fumigated prior to being

packed.

Page 25: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

53

(b) South Korea and China

Non-tariff barriers

Details of non- tariff protocols are not available for South Korea and China. However

Japan has specific requirements for entry of mangoes from India.

(c) Japan

Non-tariff barriers

For export of mangoes to Japan the requirement is to heat the mangoes with vapour

heat at 46-49oC for 20-30 minutes depending on the variety, to eradicate fruit fly.

After treating the fruits with vapour heat, the fruits should be treated with hot water

fungicidal solution and allowed to cool and dry before grading and packing.

For details of vapour heat treatment and operational aspects of equipment, one can

refer to guidelines from APEDA for export of mangoes to Japan.

(d) U.S.A

Non-tariff requirements

Phytosanitary requirements for export of mango to U.S.A

Import of mangoes from India is regulated under the “Fruits and Vegetables

Quarantine procedures.” CFR 305 & 319. The brief requirements of Animal and

Plant Health Inspection Service (APHIS) – USDA for entry of Indian mangoes into

U.S.A are:

• The mangoes must be treated in India with irradiation by receiving a

minimum absorbed dosage of 400 gamma rays.

• Importers must secure USDA import permit 30 days in advance of arrival of

irradiated commodities at the scheduled port for further facilitation.

Page 26: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

54

• The mangoes must also be given post harvest hot water fungicidal

treatment (Prochloraz at 500 ppm) at 52oC for 3-4 minutes.

• Each consignment must be inspected formally by USDA-APHIS and NPPO

of India as part of the required pre-clearance inspection activities.

• Each consignment of mangoes must be accompanied by a Phytosanitary

Certificate issued by NPPO of India certifying that fruits received the

required irradiation treatment and confirming that:

i. Mangoes were subjected to post-harvest mitigation option as

above

ii. Mangoes were inspected and found free of Cytosphaera

manigiferae, Macrophoma mangiferae and Xanthhomonas

campestris cv mangiferae indicae.

No duties are imposed on entry of mangoes from GSP countries. But MFN duties

vary from 7.3% to 7.66%.For further details, one can refer to guidelines for export

of Indian mangoes to USA, APEDA, New Delhi, April 2007.

5.6. COMMODITY SPECIFIC PREFERENCES / SPECIFICATIONS FOR EXPORTS

Region wise commodity specific preferences as per www.msamb.com are given

below:

(A) Mango

The size, packing, storage, temperature as per variety, for different regions is given

in table 7.

Page 27: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

55

Table 7: Export specifications for mangoes

Middle

East

Netherlands

/Germany U.K. Japan USA

Alphonso Wt: 200-

250 gm

Wt: 250-300

gm

Wt: 250-

300 gm

Wt :

250-300

gm

Wt : 250-

300 gm

Variety

Kesar Wt: 200-

250 gm

Wt: 225-250

gm

Wt: 225-

250 gm

Wt :

250-300

gm

Wt : 250-

300 gm

Packing 1 Doz/2.5

kg 1 Doz/2.5 kg

1Doz/2.5

kg

1 doz /

3.5 kg

1 Doz /

3.5 kg

Storage

Temperature 13°c 13°c 13°c 13°c 13°c

(a) Middle East preferences

• Early arrivals during May-June months.

• Substantial demand for Banganpalli.

• Prefer yellow colour & thin skin.

(b) European Union

• Accurate size grading.

• Yellow or red depending on variety. Red blush very popular.

• Fully mature but firm.

• No fibrous tissue.

• No turpentine flavour.

• Easy stone removal.

• Fragrant.

(c) South- East Asia

• Predominantly yellowish in colour when ripe.

• Firm flesh and free from fibre.

Page 28: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

56

• Prefer fruit between 14 +, 18 counts.

• Count of 20 is acceptable in Singapore.

• Fruit smaller than 20 counts are not accepted.

• Fully mature but firm, showing some yellow colour on arrival.

• Mixed ripeness in packs is not accepted.

• Fruits packed in cup insert called plix for securing, are preferred.

(B) Grapes

Export specifications for different varieties are given in table 8.

Table 8: Export specifications for grapes

Countries

Variety Middle East Holland/Germany U.K.

Thompson

Seedless

Berry Size: 15mm

Colour: amber

Berry Size: 16mm

Colour: white/amber

Berry Size: 18mm

white

Sharad Seedless Berry Size: 15mm

black

Berry Size: 16mm

black

Berry Size: 18mm

black

Flame Seedless ----- Berry Size: 16mm

pink

Berry Size: 18mm

pink

Packing 1 Kg 4.5 Kg /9 kg 4.5 Kg /9kg

Storage Temp. 0-1 °C 0-1 °C 0-1 °C

(C) Pomegranate

Details of specifications are given in table 9.

Table 9: Export specifications for pomegranate

Middle East Netherlands/Germany U.K.

Variety Ganesh,

Bhagwa 300-450 gm Red 250-300 gm Red 250-300 gm Red

Arakata, 200-250 gm Deep 200-250 gm Deep red 200-250 gm

Page 29: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

57

Mrudula red Deep red

Packing 5 kg 3 kg 3 kg

Storage 5 °C 5 °C 5 °C

Export By Sea By Sea By Sea

(D) Bananas

Export specifications for banana are given in table 10.

Table 10: Export specifications for bananas

Middle East

Variety Grand Naine

Cavendish

Colour : Green, Weight of Bunch : 2.5 Kg Fruits

preferably straight

Packing 13 Kg

Storage 13-14 °C

Transport By Sea

Apart from above, as our exports of banana have started picking up to Middle East

countries and will enhance further if we follow Fair Trade standards which are very

popular in entire EU.

♦ Fair trade standards for inorganic bananas

Size: Minimum length 16 cm (baby bananas 14 cm) and minimum thickness 27 mm.

Tolerance 10%.

Latex: Clusters should be free of latex. Tolerance 3% of clusters.

Flowers: All bananas must be deflowered. Tolerance 3% having unremoved flowers.

Scarring: Total scarred area acceptable is no more than 5 %. Tolerance 3% of the

clusters.

Page 30: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

58

Thrips: A cluster more than 2 fingers affected is unacceptable. Tolerance is 3% of the

clusters.

Specking : A cluster with more than 1 finger affected is unacceptable. Tolerance 3% of

cluster.

Multilated finger: A cluster with one or more multilated fingers is unacceptable.

(E) Vegetables

Parameters for export

• Okra – 3-5” in length, green lender, packing 5 Kg.

• Green chillies – 3-4” in length, green, packing 5 kg.

5.7. EFFORTS OF INDIA ON TRADE LIBERALIZATION

In order to further liberalize trade among South East Asian, Pacific Rim countries and

China. India has embarked upon signing of free trade agreements. Govt. of India has

taken initiative of “Look East Policy”.

• India-Thailand Free Trade Agreement

Recently India signed FTA with Thailand and now India has free trade with

this country.

• India-Singapore Free Trade Agreement

India has signed FTA with Singapore and now India has free trade with this

country.

• FTA with China is being worked out. It is hoped that free trade with China will

start soon after signing the FTA.

• Same is the case with Australia; it is likely that FTA will be concluded very

shortly.

Page 31: Chapter- V INTERNATIONAL TRADE REQUIREMENTS

59

• FTA with South Korea has been finalized and is likely to be signed by end of this

year.

• Asia-Pacific Trade Agreement (Bangkok agreement) has also been adopted by

India as a founder member. As a result, trade liberalization is sure to follow. The

other members are Bangladesh, Sri Lanka, Republic of Korea and Laos. China

has also acceded to Bangkok agreement.